Economy

India's economic growth will gather speed over the next two years but radical policy changes including foreign investment in multi-brand retail and availability of agricultural land for industry are needed, the Economic Survey said. HT reports.

The lingering economic crisis in Europe and the United States will affect India's merchandise as well as services exports in the financial year beginning April 1, according to the Economic Survey for 2011-12 tabled in parliament on Thursday.

The ongoing global crisis has not had much impact on the employment scenario in India and the country has been able to generate a considerable number of jobs over the last three years, said the Survey.

The Indian government aims to raise 300 billion rupees ($5.96 billion) from selling stakes in state-run firms in the fiscal year that starts next month, finance minister Pranab Mukherjee told lawmakers on Friday in his budget speech.

Finance minister Pranab Mukherjee set gross tax receipts in the fiscal year starting in April at 10.8 trillion ($214.35 billion), total expenditure at 14.9 trillion rupees and net market borrowing at 4.8 trillion rupees.

With several defence deals including the one to procure 126 combat aircraft for the IAF expected to be clinched this year, the Defence Budget was today substantially hiked by more than 17% to Rs 1,93,407 crore from last year's Rs 1,64,415 crore.

Clearly stung by rising public outrage over corruption, the UPA government is set to unveil white paper on black money outlining the broad contours of policies to tackle the scourge and the measures that it plans to take.

Finance minister Pranab Mukherjee pegged the fiscal deficit for 2012-13 at 5.1% of the gross domestic product (GDP), lower than the current year's revised 5.9%, but economists said that government borrowings despite divestment of equity in state companies and spectrum sale are still in a worrisome zone.

India's economic growth will gather speed over the next two years, finance minister Pranab Mukherjee said on Friday, but question marks loomed over the government's ability to push through reforms in critical areas to spur investments.